When IL&FS collapsed in September 2018, there was talk of a “Lehman” moment. Many felt that the collapse would devastate the Indian financial system and the economy in much the same way that the fall of investment bank Lehman Brothers had impacted the US economy. The impact hasn’t been quite the same. We haven’t had banks failing.
The Indian economy has not plunged into recession. But the impact hasn’t been negligible either. The IL&FS debacle has shaken confidence in the non-banking financial company (NBFC) sector. It has undermined private consumption ...
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